Importers can use 2 exemption notifications simultaneously for same imports

We had exported certain goods last year under LUT, in discharge of obligation against our advance authorisation that has since been redeemed after receipt of payment from the buyer. Now the buyer asked us to take back the same goods because for some reason he does not need them. We are ready to buy it at a much lower price than the price at which we exported the goods because the prices of such goods have fallen in the international market. Can we then import such goods on payment of full duty on the transaction value? 

Yes. As per Section 20 of the Customs Act, 1962, ‘if goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof’. So, you can declare the value arrived at in accordance with Section 14 of the Customs Act, 1962 read with the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, where primacy is given to the transaction value i.e. the price paid or payable for the goods being imported.

 

  Can we avail benefit of two customs exemptions simultaneously on the same import?

  Yes. The CBEC Circular no.41/2013-Cus dated 21st October 2023 clarified that an importer while availing of BCD exemption on steam coal under FTA notification No. 46/2011-Cus dated 1st June 2011 can simultaneously avail of concessional CVD at 2% under notification No. 12/2012-Cus. dated 17th March 2012. Based on this circular, the High Court of Madras allowed a similar benefit in the case of Vedanta Aluminium Ltd. Vs. Asst. Commissioner of Puducherry [ 2015 (325) ELT 304 (Mad.)].

  We are an EOU. We have made DTA sales, after making payment of BCD on the imported inputs used in the manufacture of the goods, in accordance with  Para 3 of the notification 52/2003-Cus dated 31.3.2003. Now, the audit department says that the inputs attracted anti-dumping duty at the time of imports and so, that also has to be paid by us. Can we contest the claim on the grounds that the said notification 52/2003-Cus has no provision to pay the anti-dumping duty? 

  No. Anti-dumping duty is not exempted under the said notification 52/2003-Cus. So, you cannot use the provisions in the said notification to refuse payment of the same. Anti-dumping duty is not levied on goods imported by EOU in accordance with Section 9A(2A) of the Customs Tariff Act, 1975 (CTA75), which also says that where the imported goods are either cleared as such into the DTA or used in the manufacture of any goods that are cleared into the DTA anti-dumping duty shall be imposed on that portion of the article so cleared or used, as was applicable when it was imported into India. Similar provisions exist for safeguard duty under Section 8B(6)) and anti-subsidy Countervailing duties under Section 9(2A) of CTA75. 

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